Rupee value touches record low

Mumbai: The value of Indian rupee touches an all-time low for the second day due to persistent demand for the American currency, slowing domestic growth, weak domestic equity markets and concerns about outflows. The Indian rupee resumed lower at Rs. 53.10/11 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs. 52.84/85 per dollar, and dropped further to an all-time low of Rs. 53.40 per dollar before quoting at Rs. 53.27/28 per dollar at 1030 hours.

Sustained dollar demand from banks and importers in view of a stronger dollar in overseas markets and foreign capital outflows affected the rupee value against the dollar, a forex dealer said. RBI has said that it will intervene only to smoothen volatility, and not to target specific levels. Demand for dollars from oil importers will continue to be a drag on the currency, traders said.